China to Increase Investment in Domestic Aviation Projects
China is planning to invest around 500 billion yuan in 193 major domestic aviation projects in order to meet the demand from travelers and hopefully to bolster the growth in the second biggest economy as it slows down. The projects are outlines in prepared remarks that were to be delivered by Li Jiaxiang the head of the Civil Aviation Administration in China during a forum in Beijing on Aviation.
The announcement came after a wider effort was done by the government in hopes to increase the country’s overall infrastructure spending after the economic growth has slowed to six year low during the first quarter. So far the State planner approved billions of dollars in railway and airport projects for the first six months. The aviation sector has grown fast in the recent years due to the demand from the increasing wealthy middle class and out bound passenger volume has also increased by 39 percent year on year. Chinese airlines is now flying 553 routes to 127 cities in 51 nations and is planning to add more routes during the summer and autumn season.
From the 500 billion yuan investment, 200 billion will be used on 51 projects in Chinese cities like Kunming and Urunqi, cities that are found along the routes which is part of the Belt and Road initiative of China. China’s president Xi Jinping launch the Belt and Road initiative in 2013 in hopes to increase trade and extend the Chinese influence with Central, South and West Asia. It will also connect Europe and Africa using a series of projects from oil and gas pipelines to railways.